K-Shaped Recovery: Wealth Gap Widens in U.S. Economy

The Federal Reserves latest Beige Book report reveals a stark divide in the U.S. economy, with wealthier households spending freely while lower and middle-income consumers face financial strain. This indicates a K-shaped recovery, where different economic segments experience varying outcomes. High-income households, benefiting from asset appreciation, continue to spend robustly, driving half of U.S. consumer spending. However, this groups spending power could weaken if the AI boom slows, potentially impacting the broader economy as AI-driven spending accounts for half of the nations GDP growth.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.